Last Friday, we were looking to add to our longs (and our profits) on EUR/AUD. And we tried to do that with a Fibonacci setup since we was expecting a potential pullback from 1.4150. Unfortunately, that setup didn’t pan out since the pair continued moving higher. Just keepin’ it real, dawg. But on a more optimistic note, those of you who found a trade from the triangle, which we identified back on February 24, are now 50 pips richer. This assumes y’all didn’t take profits off the table of course. So, live it up, ‘coz you now have 230 to 300 pips, dawg!
Anyhow, we’ve got another Fibonacci setup going on today. And looking at that chart, the 38.2% and 61.8% retracement levels are the levels to watch, since they line up nicely with the areas of interest at 1.4150 and 1.4090 respectively. However, just know that there’s a chance that the pair may continue moving higher above 1.4220. After all, stochastic is already pointing up and moving away from oversold territory and all that.
That there descending channel for EUR/JPY is actually kinda ancient (by intraday standards), since we’ve been playing it since February 6. And since the pair is back at the channel’s resistance area, today’s play is obviously to look for opportunities to go short again while gunning for 118.60 or lower.
Y’all may wanna to wait for a clear break past 120.30 as confirmation, though, since there’s a chance that them bulls may attempt an upside channel breakout. Just look at our technical indicators. As y’all can see, them moving averages are already in uptrend mode. Stochastic, meanwhile, just bounced off from the oversold area. An upside channel breakout needs to clear 121.70, though, ideally on strong momentum. So be ready to bail your shorts or even switch bias if the pair does reach 121.70. In any case, just make sure to practice proper risk management, a’ight?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.